Exam (elaborations)
FAC3764 Assignment 4 semester 1 2023
- Course
- Institution
The document contains Assignment question Together with answers Distinction Guaranteed 100% multiple Attempts done Whtsapp
[Show more]
Seller
Follow
ExpertAcademy
Reviews received
Content preview
6/15/23, 12:22 PM Assessment 4: Attempt reviewMENU
Dashboard / My courses / FAC3764-23-Y / Assessments / Assessment 4
Started on Thursday, 15 June 2023, 12:39 AM
State Finished
Completed on Thursday, 15 June 2023, 11:22 AM
Time taken 10 hours 43 mins
Marks 13.00/15.00
Grade 86.67 out of 100.00
Question 1
Correct
Mark 1.00 out of 1.00
Indicate whether the following statement is true or false:
Where an intangible asset is initially measured at fair value, this fair value must be measured in terms of an active market.
Select one:
True
False
Explanation:
IAS 38.33 explains that when an asset is initially measured at its fair value (e.g. acquired in a business combination), the fair value of an
intangible asset must simply reflect the market participants’ expectations at the acquisition date about the probability that the expected
future economic benefits embodied in the asset will flow to the entity. There is no reference to a requirement for an active market.
IAS 38.47 goes on to explain that ‘the fair value of an intangible asset is reliably measurable if
(a) the variability in the range of reasonable fair value measurements is not significant for that asset or
(b) the probabilities of the various estimates within the range can be reasonably assessed and used when measuring fair value.’
The only time that IAS 38 requires that the fair value be determined in terms of an active market is when applying the revaluation model and
when calculating the residual value.
The correct answer is 'False'.
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=11323795&cmid=598921 1/11
,6/15/23, 12:22 PM Assessment 4: Attempt review
Question 2
Correct
Mark 1.00 out of 1.00
MENU
Indicate whether the following statement is true or false:
Dashboard / My courses / FAC3764-23-Y / Assessments / Assessment 4
When providing the disclosure relating to intangible assets, this disclosure must distinguish between intangible assets that are internally
generated, those that are acquired by government grant and those acquired in another manner.
Select one:
True
False
Explanation:
When providing the disclosure relating to intangible assets, this disclosure must distinguish between intangible assets that are internally
generated and those acquired in another manner.
The correct answer is 'False'.
Question 3
Correct
Mark 1.00 out of 1.00
Indicate whether the following statement is true or false:
The residual value of an intangible asset must be determined in terms of an active market.
Select one:
True
False
Explanation:
The residual value of an intangible asset is zero except in the case of two situations, one of which is that there is an active market that can be
used to determine the residual value but the other requires that there is a commitment by a third party to buy the asset at the end of its
useful life – where this situation involves no active market at all. Thus the statement is wrong in that it states that the residual value must be
determined in terms of an active market.
The correct answer is 'False'.
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=11323795&cmid=598921 2/11
,6/15/23, 12:22 PM Assessment 4: Attempt review
Question 4
Correct
Mark 1.00 out of 1.00
MENU
Indicate whether the following statement is true or false:
Dashboard / My courses / FAC3764-23-Y / Assessments / Assessment 4
Internally generated intangible assets may be capitalised under certain circumstances.
Select one:
True
False
Explanation:
Although certain internally generated intangible assets may be prohibited from being capitalised (e.g. internally generated goodwill and
brands), this is not true for all internally generated assets.
The correct answer is 'True'.
Question 5
Correct
Mark 1.00 out of 1.00
Indicate whether the following statement is true or false:
All intangible assets must be amortised.
Select one:
True
False
Explanation:
Only intangible assets with a finite life are amortised, and only if they are available for use. Intangible assets with indefinite useful lives are
not amortised – and assets that are not yet available for use are not amortised.
The correct answer is 'False'.
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=11323795&cmid=598921 3/11
, 6/15/23, 12:22 PM Assessment 4: Attempt review
Question 6
Correct
Mark 1.00 out of 1.00
MENU
Indicate whether the following statement is true or false:
Dashboard / My courses / FAC3764-23-Y / Assessments / Assessment 4
When calculating an asset’s value in use, the most recent and detailed cash flow forecasts should be used and should be based on the
longest period possible so as to give the most inclusive and accurate value i.e. if there is both a 5-year cash flow projection and a 10-year
cash flow projection available, then the 10-year cash flow projection must be used.
Select one:
True
False
Explanation:
We should base the value in use calculation on cash flow projections that should ideally not extend beyond 5 years unless certain specific
conditions are met.
The correct answer is 'False'.
Question 7
Correct
Mark 1.00 out of 1.00
Fill in the missing amount:
A factory plant has an expected selling price of R220 000 if sold at reporting date, where this selling price was determined based on the
selling prices of identical assets in an active market. Legal costs of R10 000 would be incurred in order to sell this asset. Costs to reorganise
the factory after the sale of the asset would be C20 000. The fair value less cost of disposal would be R R210 000 .
Your answer is correct.
Explanation:
FV – CoD = R220 000 – R10 000 = R210 000
When calculating the FV-CoD, we deduct from fair value those costs that are directly attributable to the disposal, such as legal costs. The
reorganisation costs are not considered to be directly attributable to the disposal.
The correct answer is:
Fill in the missing amount:
A factory plant has an expected selling price of R220 000 if sold at reporting date, where this selling price was determined based on the
selling prices of identical assets in an active market. Legal costs of R10 000 would be incurred in order to sell this asset. Costs to reorganise
the factory after the sale of the asset would be C20 000. The fair value less cost of disposal would be R[R210 000] .
https://mymodules.dtls.unisa.ac.za/mod/quiz/review.php?attempt=11323795&cmid=598921 4/11
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ExpertAcademy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.83. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75632 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now